American Electric Power (AEP) Draws Focus as Barclays Refreshes Utilities Models

American Electric Power Company, Inc. (NASDAQ:AEP) is included among the Best Low Risk Stocks for a Retirement Stock Portfolio.

Barclays, on January 22, raised its price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $121 from $117. The firm kept an Equal Weight rating. The update came as the firm refreshed valuations across the power and utilities group ahead of fourth-quarter earnings.

AEP has also been getting more attention from investors. In a recent CNBC segment, Sean Russo of Ritholtz Wealth Management pointed to the company as a standout within the utility space. American Electric Power is carrying out one of the largest grid modernization programs in the US, with a focus on expanding transmission capacity and improving reliability. Management has said demand expectations continue to climb, driven by electrification and the rapid growth of data centers, underscoring the need for ongoing investment across its regulated assets.

The company’s five-year capital plan totals $72 billion and includes customer commitments for about 20 gigawatts of additional power by 2030. That demand is being fueled by data centers, manufacturing reshoring, and broader economic development. AEP also pays a dividend yield of roughly 3.26%.

American Electric Power Company, Inc. (NASDAQ:AEP) is a regulated electric utility holding company whose subsidiaries provide electricity generation, transmission, and distribution services.

While we acknowledge the potential of AEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Best S&P 500 Dividend Stocks to Buy in 2026 and 12 Most Profitable Dividend Stocks to Buy in 2026

Disclosure: None.